Singapore REITS - My Stocks Investing

Low Risk High Value Stock Pick for Singapore REITs Dividend Investing

Post author:Marubozu
Post published:April 5, 2014

These Bubble Charts are used to show the “relative” position compare to other Singapore REITs.

Note: NOT all the REITs have the same risk although they have very attractive distribution yield. High Distribution Yield does NOT mean it is safe. Vice versa, Low Distribution Yield does NOT mean the investment is no good. Investors must KNOW the risks involved when investing in Singapore REITs.

Two visual bubble charts to pick and avoid:

Undervalue Singapore REITs with High Distribution Yield (Value Pick)
Overvalue Singapore REITs with High Gearing Ratio (Risk Avoidance)

See Last Singapore REIT Bubble Charts here.

See detail Singapore REITs Fundamental Comparison Table here.

Disclaimer: This is NOT a recommendation to buy or sell. The authors do not guarantee the accuracy of the data and NOT responsible to any wrong interpretation by the readers.

Singapore REIT Fundamental Analysis Comparison Table – 5 April 2014

Post author:Marubozu
Post published:April 5, 2014

FTSE ST Real Estate Investment Trusts (FTSE ST REIT) Index changes from 714.18 to 731.88 compare to last post on Singapore REIT Fundamental Comparison Table on Mar 1, 2014. The index is trading above 200D SMA (moving sideway) after breaking out from a Descending Triangle. A trend reversal in making base on technical analysis.

Price/NAV increases from 0.9687 to 0.9930.
Dividend Yield decreases from 6.84% to 6.72%
Gearing Ratio maintain at 34.00%.

In general (base on quantitative analysis and technical analysis), most Singapore REIT is slightly under value now and the distribution yield is attractive (but with risks). Most of the Singapore REITs are trading in a consolidation range but some REITs have broken the 200D SMA resistance. These REITs may start an uptrend soon if they are able to stay above the 200D SMA as support.
There are one key negative point to take note when investing in Singapore REITs:
- The uncertainty in term of interest hike in near future remains high as Federal has started the QE tapering. Any hike in interest will affect the distribution income (reduction), NAV (value drops) and also the gearing ratio (increase) of the REIT. All of these will weaken the fundamental of the REIT and affect the REIT share price.
- Singapore Interest Rate is creeping up quietly but you don’t see BIG news in the newspaper. Look at the % of increase in 2014, from 0.05% to 0.2% — 4X!

Singapore Interest Rate April4-2014

And look at the past high in 20 years! The interest rate can go to as high as 10% and average at about 4%. The current interest rate is chicken feet! There is one thing GUARANTEE that interest rate will SURE go up! Everyone should be very cautious about the interest impact on your current investment and mortgage loan. It is extremely important to equip yourself with financial knowledge now before it is too late in you want to stay in this investing world. No excuse for financial ignorant because you are fully responsible on your own investment.

However there are some REITs in Singapore have been managing their debt maturity profile pretty well and have minimum impact if there is an increase in interest rate. The DPU should not be affected much and the risk of DPU reduction is minimal. The key thing here is how to find out those “Gem” by applying the right method to analyse the Risks. Join the next workshop on “How to pick Singapore REIT for Dividend Investing” to learn how to do Quantitative, Qualitative Analysis and Risk Assessment Plus Identify the Trend on Singapore REITs so not to miss out any opportunity to pick up “Low Risk REITs with Decent Dividend Yield”.
Visual Comparison for Singapore REITs using Bubble Charts.

Singapore REIT Fundamental Analysis Comparison Table – 1 Mar 2014

Post author:Marubozu
Post published:March 1, 2014

FTSE ST Real Estate Investment Trusts (FTSE ST REIT) Index changes from 696.54 to 714.18 compare to last post on Singapore REIT Fundamental Comparison Table on Feb 8, 2014. The index is trading below 200D SMA (and sloping down) and technically bearish but consolidating within a Descending Triangle. Breaking down from this Descending Triangle will trigger more selling of Singapore REITs.

Price/NAV decreases from 0.9471 to 0.9687.
Dividend Yield increases from 6.80% to 6.84%.
Gearing Ratio increases from 33.93% to 34.00%.
In general, most Singapore REIT is slightly under value now and the distribution yield is attractive (but with risks). Most of the Singapore REITs are trading in a consolidation range and seems like waiting for the next big move base on technical analysis and chart pattern.
There are two negative points to take note when investing in Singapore REITs:
- Overall sentiment is negative for Singapore REITs. This can be seen from the the FTSE ST Real Estate Investment Trust Index and FTSE ST Real Estate Index.
- The uncertainty in term of interest hike in near future remains high as Federal has started the QE tapering. Any hike in interest will affect the distribution income (reduction), NAV (value drops) and also the gearing ratio (increase) of the REIT. All of these will weaken the fundamental of the REIT and affect the REIT share price.
However there are some REITs in Singapore have been managing their debt maturity profile pretty well and have minimum impact if there is an increase in interest rate. The DPU should not be affected much and the risk of DPU reduction is minimal. The key thing here is how to find out those “Gem” by applying the right method to analyse the Risks. Join the next workshop on “How to pick Singapore REIT for Dividend Investing” to learn how to do Quantitative, Qualitative Analysis and Risk Assessment Plus Identify the Trend on Singapore REITs so not to miss out any opportunity to pick up “Low Risk REITs with Decent Dividend Yield”.